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E-Commerce
#3 use of the internet
Chapter 11
What Is E-Commerce?
Commerce:
E-commerce: Act of doing business transactions over the
Internet or similar technology
the exchange of goods or services
Isn’t new - has existed for years via private networks
(electronic funds transfers, etc.)
M-commerce: E-commerce carried out via phones and
other mobile devices
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What Is E-Commerce?
Brick-and-mortar store:
A conventional store with a
physical presence.
Click store (Dot-com store):
An internet-only store with
no physical presence
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Advantages/Disadvantages for Business
Advantages for businesses
Reduced costs
Dot-coms are less expensive than
brick-and-mortar stores because
there is no physical storefront to
maintain
Increased customer satisfaction
Disadvantages for businesses
If shopping experience is
convenient (open all the time, no
driving, etc.)
Can send customers personalized
information
Broader customer base (less
geographical restrictions)
Potentially higher sales
Pressure to be always open,
site always working
4 Today and Tomorrow, 13th Edition
Understanding Computers:
Solid, well designed sites and
hosting
Lost business due to some
customer hesitation to
shop online
Risk of fraudulent credit
card transactions
Ease of entry for
competitors
Advantages/Disadvantages for Customer
Advantages for customers
Convenience
Easier comparison shopping
Higher number of merchants
to choose from
Geographical location is not
an issue
Shopping bots and other
comparison shopping tools are
available
Higher degree of selection
Potential cost savings
Customized products
Disadvantages for customers
Potential for fraud and other
potential security problems
Not being able to see or
touch the goods
5 Today and Tomorrow, 13th Edition
Understanding Computers:
Buyer protection programs
and using
credit card protection can
help
3D online stores may help
Possible expense of returning
merchandise
Some brick and mortar stores
allow returns to local stores
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Types of E-Commerce Web Sites
Manufacturer and e-tailer Web sites:
Sell products and services directly to the end user
Subscription site:
Physical goods
Electronic goods
Sells access to its online content
Brokerage sites:
Auctions
Financial
Trade securities
Travel
Bring buyers and sellers together
Charge a commission on sales
Find resources
Negotiate deals
Market and commodity exchange sites:
Matches organizations with goods or services to sell with potential
buyers, but does not get involved in the details of the sale
Might charge for the transactions; might have to join to participate
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Implementing Web-Based
E-Commerce
Step 1: Select appropriate business models and types of Web
sites
Nature and selling process of goods and services
Models include
Business-to-consumer (B2C): An e-commerce model in which a business
provides goods or services to consumers
Business-to-business (B2B): An e-commerce model in which a business
provides goods or services to other businesses
Manufacturer to wholesaler or wholesaler to retailer
Consumer-to-consumer (C2C): An e-commerce model in which a consumer
provides goods or services to other consumers
Wholesaler/manufacturer to end user
End users sell to end users
Business-to-government (B2G): An e-commerce mode n which a business
provides goods and services to government organizations
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Implementing Web-Based
E-Commerce
Step 2: Select the desired e-commerce
applications
Determine electronic customer relationship
management
Basic features vs. value added
Email Confirmation of order
Tracking numbers
Order lookup
Online chat using chatterbot
Determine which other business systems the Web
site will be linked to
UPS or FedEx
Pay Pal
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Implementing Web-Based
E-Commerce
Step 3: Develop
procedures for handling
electronic financial
transactions
Which types of payments
will be accepted
Credit cards
Digital gift certificates
Gift cards
Coupons
Digital wallet
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Implementing Web-Based
E-Commerce
Step 4: Design the store front
Sites need to be carefully designed, developed,
and tested
Ensure order forms and checkout pages are
located on a secure Web server
Use https://
Continually evaluate security and collected data
E-commerce features can be created using:
Storefront software: Facilitates the creation of an
online store (either packaged or Web-based)
etsy.com
Shopping cart software: Designed to add only
ordering capabilities to an existing Web site
miva
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Implementing Web-Based
E-Commerce
Step 5: Implement appropriate sales and marketing
strategies
Use an appropriate domain name and URL
URL should be easy to remember and type
www.buyMyJunk.com
Include adequate customer service features
Collect taxes from customers if required by law
Advertise
Keep the customers coming
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Implementing Web-Based
E-Commerce
Optimize the site (SEO)
Web pages can have special tags for search engines (description,
keywords) <meta>
Submit the website
to search engines
Consider
sponsored
listings
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Issues
Security
Privacy
Trust
Attracting Customers and keeping them
Understanding Computers: Today and Tomorrow, 13th Edition
Security Issues
SECURITY, PRIVACY, & TRUST
Display a privacy policy and security statement
Security is essential for e-commerce Web sites
People need to trust the process
Some guidelines for e-commerce sites:
Secure transactions (use a secure Web server)
Address bar uses https:// instead of http://
Secure sensitive documents and files (use encryption)
Authenticate online business partners
use digital certificates and digital signatures
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Implementing Web-Based
E-Commerce
ATTRACTING CUSTOMERS/PROMOTE THE SITE
Advertise the site on business cards, ads, etc.
Consider using banner ads
Use of rich media ads is growing
Can display sponsor banner ads on site
Use of behavioral (targeted) ads is growing
Update the site regularly
Consider adding
incentives for return visits (contests, coupons, etc.)
Use e-mail marketing techniques (free shipping offers, new product
notifications, etc.)
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